This invention relates generally to financial services and products, and more particularly to financial systems that implement a retirement consumption strategy that provides an investor with exposure to markets for a period of time and lifetime payments thereafter.
There remains a gap that has not yet been sufficiently addressed in the retirement income space Annuities, or various investments having similar properties, meet the needs of those with high risk aversions who are willing to exchange market participation for income stability. On the other end of the risk spectrum are those with low risk aversions who willingly forgo stable income in favor of market participation. Thus, the needs of the extremes are met, but the needs of the moderate are not. What are needed, therefore, are retirement strategies that provide not only the valuable options for those trying to manage their own retirement income needs, but also a much needed building block for institutions to build a product that has both income guarantees and market participation.